Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

Gold advances as Fed signals slower rate hikes

11/23/2022 | 11:13pm EST
An ingot of 99.99 percent pure gold is cast at the Krastsvetmet non-ferrous metals plant in Krasnoyarsk

(Reuters) - Gold prices bounced above the key $1,750 an ounce level on Thursday, consolidating gains after minutes of the U.S. Federal Reserve's latest meeting signalled slower interest rate hikes.

Spot gold rose 0.4% to $1,755.73 per ounce by 0321 GMT. U.S. gold futures advanced 0.6% to $1,755.90.

Lower rates tend to lift the appeal for bullion in comparison with other interest-bearing assets. High interest rates have kept a leash on gold's traditional status as a hedge against high inflation and other uncertainties this year as they translate into higher opportunity cost to hold the non-yielding asset.

The minutes of the Fed's Nov. 1-2 meeting showed that a "substantial majority" of Fed policymakers agreed it would "likely soon be appropriate" to slow the pace of interest rate hikes.

Fed fund futures are now pricing in an 85% chance of 50-basis point (bps) increase in the December meeting, after four straight 75 bps hikes.

"The FOMC minutes and the perceived response from markets that a slowing down of rate hikes - alongside the extreme seasonal pattern of buying in late November-December into end of the first quarter - has driven the metals markets higher into Asia," said David Mitchell, managing director at Singapore's Indigo Precious Metals.

Providing a further fillip to gold and precious metals overall, the dollar was broadly lower following the Fed minutes. A weaker dollar makes bullion cheaper for overseas buyers.

However, spot gold may end its bounce around a technical resistance of $1,757 per ounce and resume its drop thereafter, according to Reuters technical analyst Wang Tao.

Market activity was likely to be relatively muted by the U.S. Thanksgiving holiday.

Physical gold demand in Asia, meanwhile, stayed soft this week, with premiums in top hub China easing further as fresh COVID-19 restrictions dimmed activity, while higher domestic prices put off most buyers in India.

Spot silver rose 0.5% to $21.62 per ounce, platinum added 0.3% to $999.38, while palladium gained 0.7% to $1,894.75.

(Reporting by Arpan Varghese in Bengaluru; Editing by Rashmi Aich and Savio D'Souza)

By Arpan Varghese


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ASA GOLD AND PRECIOUS METALS LIMITED 0.62% 16.34 Delayed Quote.14.81%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.08% 0.70519 Delayed Quote.4.32%
BRITISH POUND / US DOLLAR (GBP/USD) -0.31% 1.23109 Delayed Quote.2.52%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.60% 0.75146 Delayed Quote.1.78%
EURO / US DOLLAR (EUR/USD) 0.10% 1.0861 Delayed Quote.1.57%
GOLD 0.27% 1927.4 Delayed Quote.5.78%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.42% 0.012225 Delayed Quote.1.48%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.49% 0.6433 Delayed Quote.2.22%
PALLADIUM 0.46% 1646.5 Delayed Quote.-8.93%
S&P GSCI PRECIOUS METALS INDEX 0.43% 2534.5 Real-time Quote.5.70%
SILVER 0.48% 23.66 Delayed Quote.-1.38%
Latest news "Economy"
05:51pBoeing CEO hints at higher jet output, optimistic on China
RE
05:50pDC Comics fandom celebrates return of 'Swamp Thing' to big screen
RE
05:50pSK Hynix reports Q4 loss as demand weakens
RE
05:47pFactbox-What ending the U.S. COVID health emergency means for your pocket
RE
05:45pValero JV approves sustainable aviation fuel project at Texas plant
RE
05:45pThe WSJ Dollar Index Falls 1.50% This Month to 95.10 -- Data Talk
DJ
05:45pEuro Gains 1.52% to $1.0866 -- Data Talk
DJ
05:45pSterling Gains 1.81% to $1.2317 -- Data Talk
DJ
05:45pU.S. retail coffee prices rose as much as 50% in Q4 -report
RE
05:45pDollar Lost 0.77% to 130.11 Yen -- Data Talk
DJ
Latest news "Economy"